Should you buy physical gold or Gold ETF this Akshaya Tritiya on 3 May
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The tradition of buying gold at profitable events such as Akshaya Tritiya is part of the Indian tradition. According to religious beliefs, buying gold on good days will bring them prosperity and luck. This year, Akshaya Tritiya will be marked on May 3. People buy all forms of gold ranging from coins to jewelry to digital gold.However, with changes in times investors increasingly choose ETF gold over physical gold.
Gold ETF vs physical gold
Chintan Haria, Head – Product Development & Strategy, Mutual Dana Prudential Icici said that this was large because ETF Gold offers several different benefits. Here, an investor does not need to worry about storage, theft because the gold unit is held in the form of a lower demat and cost of acquisition given the absence of the absence of making and other related costs. “You can buy gold for yourself or give it through the funds traded by Gold Exchange or ETF gold. One gold ETF unit is equivalent to 1 gram of 99.50 gold. These units are in the form of dematerialisation. So the profit here is that the minimum investment is far less than in the case of physical gold – which usually must be purchased at least 10 grams in the case of investment destinations. “Vijay Singhania, chairman, said Tradesmart.
Advantages of Gold ETF
Vijay Singhania, Chair, Tradesmart listed the reasons why someone would rather buy ETF gold than physical gold.
1) You can buy & sell units online because these units are traded on stock exchanges such as company shares. So ETF is as liquid as physical gold.
2) ETF gold that is owned is the same price of PAN India unlike physical gold, where people can see different prices throughout the city.
3) When someone buys physical gold in the form of jewelry, the person may have to pay up to 30% extra in the form of making costs. In the case of ETF gold, the cost ratio is around 1%, while the broker is around 0.5%. One also needs to pay a wealth tax of 1% if the physical gold value purchased exceeds the hospital. 30 LAKH. However, the ownership of ETF gold does not withdraw wealth tax. “
The tradition of buying gold at profitable events such as Akshaya Tritiya is part of the Indian tradition. According to religious beliefs, buying gold on good days will bring them prosperity and luck. This year, Akshaya Tritiya will be marked on May 3. People buy all forms of gold ranging from coins to jewelry to…